Photo Caption : From Left: CPA David Mwangi, General Manager, Finance, KenGen, Eng. Frank Konuche, Presiding Chairman, KenGen and Eng. Peter Njenga, MD & CEO, KenGen during the 74th AGM event in Nairobi.
NAIROBI, October 29,2026– Kenya Electricity Generating Company (KenGen) invested KSh15.5 billion in power infrastructure in the financial year ended June 2026, increasing capital expenditure by 14.3 percent as it strengthened generation capacity to meet rising electricity demand.
The investment comes as Kenya’s peak electricity demand reaches 2,549 megawatts (MW), with the power producer supplying 8,975 gigawatt-hours to the national grid during the year, representing 57.2 percent of national electricity demand. More than 90 percent of the electricity dispatched by the company came from renewable sources.
Speaking at a press briefing following KenGen’s 74th Annual General Meeting (AGM) in Nairobi on Thursday, Managing Director and Chief Executive Officer Eng. Peter Njenga said the investment was aimed at improving plant reliability while developing capacity to support economic growth.
“Kenya’s growing economy needs dependable electricity which to date the peak demand is 2,549MW. Our investment is focused on keeping existing plants reliable while developing the generation capacity needed to support businesses, households and future growth,” he said.
On project implementation, Njenga said the rehabilitation of the 63MW Olkaria I geothermal power station had been completed and was awaiting official commissioning. The additional capacity is expected to raise KenGen’s total installed electricity capacity to 1,848MW.
Other projects in the company’s development portfolio include the proposed 42.5MW Seven Forks solar plant, the redevelopment of Gogo hydropower station, battery storage and the proposed raising of Masinga Dam.
These projects form part of the company’s G2G 2034 Strategy, which targets a development portfolio of 5,540MW across geothermal, hydropower, wind, solar and nuclear energy.
Beyond electricity generation, KenGen is pursuing industrial development through its Green Energy Park at Olkaria, Naivasha, which aims to attract manufacturing, food processing and data centre investments by leveraging geothermal electricity and steam.
“Geothermal energy can do more than supply electricity to the grid. At Olkaria, we are bringing together energy, steam and industrial land to attract businesses that can create jobs and strengthen Kenya’s manufacturing base,” Njenga said.
The park has secured special economic zone status and designation as a customs-controlled area. KenGen is also expanding its commercial consultancy services, including geothermal drilling, resource assessment, engineering and power plant operation and maintenance, to diversify revenue beyond electricity sales.
The company’s financial performance saw revenue rise by 6.4 percent to KSh59.7 billion, while operating profit increased by 4.1 percent to KSh14.2 billion. Profit after tax declined by 1.2 percent to KSh10.35 billion, primarily due to lower finance income as funds were deployed into capital investment. Borrowings decreased by KSh12.2 billion to KSh97.1 billion.
Also addressing the journalists after the AGM, KenGen Board Presiding Chairman Eng. Frank Konuche said the company would balance shareholder returns with investment in infrastructure and efforts to strengthen its financial position.
Shareholders approved a first and final dividend of KSh0.75 per share, amounting to approximately KSh4.946 billion, compared with KSh0.90 per share paid the previous year. Payment is expected on or about January 21, 2027, to shareholders registered as of October 29, 2026.
“We remain committed to balancing dividends, investment and financial strength,” Konuche said, adding that the Board would prioritise commercially sound projects, disciplined investment and effective risk management.
He said KenGen was also seeking to diversify revenue through technical consultancy engagements in Tanzania, Djibouti, Eswatini and Bhutan, using expertise developed in Kenya.
Konuche commended Njenga for steering the company through external economic pressures and a period of growth.
“Despite the external pressures and other macro environmental factor, Eng. Njenga managed to steady the ship and led KenGen through a period of steady growth,” he said.
The AGM also marked a governance milestone, with Class A shareholders directly electing two representative directors to the Board for the first time under the Government-Owned Enterprises Act, 2025.
Shareholders also approved revised Articles of Association to support effective decision-making.KenGen is preparing for a leadership transition, with Ronoh Kibet Charles, currently General Manager for Commercial Services, set to succeed Njenga as Managing Director and CEO on February 1, 2027.
